Question $8$ of $8$

$\frac{8\mathrm{.}75}{15}$

Whispering Winds Cafeteria operates cafeteria food services in public buildings in the Midwest. Whispering Winds is contemplating a major change in its cost structure. Currently, all of their cafeteria lines are staffed with hourly wage employees who hand serve the food to customers. Benson Riggs, Whispering Winds's owner, is considering replacing the employees with an automated self$-$service system. However, before making the change, Benson would like to know the consequences of the change, since the volume of business varies significantly from location to location. Shown below are the CVP income statements for each alternative.

$\backslash$table$[[,\backslash$table$[[$Personal Service$],[$System$]],\backslash$table$[[$Automated Self$-$Service$],[$System$]]],[$Sales$,$$$2,900,000,$$$2,900,000],[$Variable costs,$2,175,000,1,450,000],[$Contribution margin,$$725,000,$$$1,450,000],[$Fixed costs,$145,000,870,000],[$Net Income,$$580,000,$$$580,000$